DraftKings Gambling Addiction Problems Caused by Intentional Algorithm Design: Lawsuit

Illinois man says he spent money saved for his wedding, his 401(k), and almost committed suicide due to DraftKings’ ruthless personalized marketing.

A lawsuit against DraftKings and Casino Queen alleges the online sportsbooks intentionally designed their apps to foster compulsive gambling behaviors that can devastate users’ lives.

The complaint (PDF) was filed by Dane Miller in the U.S. District Court for the Northern District of Illinois on June 24. It accuses the two companies of engaging in wrongful conduct involving the development, design, marketing, advertising and operation of their online gambling platforms.

Miller says after being on the DraftKings app for only a year, he was granted VIP status, flooded with offers and promotions, and assigned “VIP hosts” who analyzed data from algorithms collected on his gambling behavior. These hosts ensured he placed bets as frequently as possible and for as high an amount as possible, leading him to suffer devastating financial losses.

Sportsbook Gambling Addiction Problems

In 2018, the U.S. Supreme Court issued an opinion that granted each state the authority to decide for itself whether to legalize sports gambling. Many have done so, leading to websites like DraftKings, FanDuel and BetMGM becoming increasingly popular and profitable.

However, with the rise of online legalized sports betting and sportsbooks have come increased incidents of gambling addiction. Critics claim that this is caused by the apps themselves using aggressive and deceptive promotions, algorithms that detect, analyze and psychologically profile users, and illegal operations and marketing in states where sports gambling laws have not been passed.

Young adults, particularly college-age males, have been hard hit by sports betting addiction. Many are away from home and learning to manage their finances for the first time, while also being more comfortable making quick online transactions after growing up with mobile apps and digital payments.

As a result, young men are disproportionately affected by sports betting addiction, with losses often escalating quickly before parents, schools or others realize there is a problem.

In light of these concerns, a growing number of consumers have filed DraftKings lawsuits, as well as similar FanDuel lawsuits and claims against other sportsbooks. Plaintiffs argue the platforms intentionally encourage compulsive and self-destructive gambling for the sake of increased profits.

DraftKings Compulsive Gambling Allegations

Miller was only 26 years old when he opened a DraftKings account in October 2020. His home state of Illinois had just legalized the practice.

While Miller, a long-time casual fantasy sports player, started with small, infrequent bets, he says his betting quickly escalated as he was drawn into parlays and live betting.

“During this time, DraftKings would send Miller push notifications and offer a live feed of various sporting events where Miller could bet on plays, pitches, and other events in real time. The constant prompts, access, and live-feeds, along with the rapid-fire pace of bets and the personalized attention directed to Miller, fueled an addiction that eventually consumed all aspects of Miller’s life.”

– Dane Miller v. DraftKings Inc. et al.

According to the lawsuit, when DraftKings saw the pattern of his wagers, instead of a warning that he was showing signs of compulsive gambling, Miller was granted VIP status in May 2021. This came with an unending stream of promotions, profit boosts, free bets, deposit matches and even tickets to professional sporting events, he indicates.

It also came with access to a VIP host, who pushed Miller toward bigger and more frequent bets, he says. At one point, the lawsuit indicates Miller bet away the money he had saved for his wedding. In response, DraftKings VIP host gave him two tickets to a suite at Soldier Field, home of the Chicago Bears.

Gambling Addiction and Suicidal Thoughts

Miller’s gambling habit led to him placing more than $2 million in bets, using credit cards, 401(k) loans and personal loans. In September 2024, his gambling addiction cost Miller his job.

Only two weeks after DraftKings granted him five $200 sportsbook credits, Miller wrote a suicide note and was hospitalized for suicidal ideation. He was diagnosed with severe gambling disorder, anxiety and depression.

Miller was released in early November 2024, and relapsed almost immediately. He joined an intensive outpatient treatment program and self-excluded from online sports betting in late December 2024, using an Illinois law made for these circumstances.

The lawsuit alleges that the defendants’ behavior was intentional, employing algorithms with the specific purpose of inspiring and then stoking compulsive gambling habits with technology and data that the average consumer is not prepared or equipped to combat.

“DraftKings collected and used massive amounts of personalized data and analytics to drill down on an individual user’s gambling patterns, uses, and triggers. DraftKings could have easily utilized similar data and algorithms to screen and detect problematic gambling behavior, but failed to do so.”

– Dane Miller v. DraftKings, Inc. et al.

Miller presents claims of design defect, failure to warn, negligent design, negligent failure to warn, negligent infliction of emotional distress and unjust enrichment. He seeks compensatory damages for medical expenses, pain and suffering, mental anguish, anxiety and discomfort, loss of enjoyment of life, emotional distress, loss of earnings and loss of earning capacity, as well as punitive damages.

Gambling Addiction Lawsuits

As the use of sportsbooks continues to grow, sports betting addiction lawyers expect thousands of similar gambling addiction lawsuits will be filed in courts nationwide by consumers who have found themselves facing severe financial losses due to predatory algorithms and promotions used by FanDuel, DraftKings and similar online platforms.

As a result, sports gambling addiction lawsuits are being investigated nationwide, focusing on whether the apps intentionally foster compulsive betting in order to profit from those addictions. Platforms named in various sportsbook lawsuits and investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

To stay up to date on this litigation, sign up to receive sports betting addiction lawsuit updates sent directly to your inbox.